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Britain’s FTSE 100 has had its best year since the recovery from the financial crisis, outperforming global rivals and its shares surging against a backdrop of wider economic and political uncertainty.
miningDefense and financial stocks led gains, with notable gains in 2025.
From the last trading day in 2024 to December 31, 2025, the UK’s largest stock market index rose by 1,758.36 points, an increase of 21.5%.
It was the biggest gain since 2009, when the FTSE 100 rose 22.1% in the wake of the devastating global financial crisis.
As of 2025, the index closed at 9,931.38 points, breaking all-time highs several times throughout the year, and was once close to breaking through the 10,000-point mark.
The blue-chip index’s success this year means it has outperformed its European and US peers, including France’s Cac 40 and New York’s S&P 500, while rising roughly in line with Germany’s Dax.
The S&P 500 is expected to rise about 17% this year.
The steady earnings of FTSE-listed companies have attracted investors despite widespread weakness in the UK economy and political uncertainty that has led to sharp swings in global stock markets.
It’s been a particularly strong year for precious metals producer Fresnillo, with its shares soaring about five times from 2025 levels, while gold miner Endeavor Mining’s shares have also risen nearly threefold.
Shares of defense companies Rolls-Royce and Babcock also surged, roughly doubling in value, in a year where geopolitical tensions continued to rise.
Bank stocks also rose on higher profits and business progress, led by gains from Lloyds Banking Group, which nearly doubled on steady gains throughout the year.
Stock market turmoil peaked in early April as investors reacted to U.S. President Donald Trump Announced plans to increase tariffs on U.S. imports from countries around the world.
The FTSE 100 suffered its biggest one-day drop since the start of the Covid-19 pandemic, as did Wall Street’s S&P 500 and Dow Jones, but has since pared losses and returned to growth.
Dan Coatsworth, head of markets at AJ Bell, said the FTSE 100 had “just the right ingredients for investors in a year marked by political, trade and market uncertainty”.
“This year’s success in blue-chip indexes is not a flash in the pan,” he added.
“The FTSE 100 has delivered positive returns in eight of the past 10 years, averaging 9.1% per annum including dividends.
“This performance enhances the appeal of long-term investing.
“There may be a few years when performance disappoints, but history shows it’s worth pursuing.”
Despite the strength of the FTSE 100, a large number of listed companies will choose to abandon the London Stock Exchange (LSE) by 2025 and instead enter foreign stock markets or be taken over privately.
straight line Delisted london school of economics The company became a major force in the UK insurance market after being acquired by rival Aviva in a £3.7bn deal.
Beverage manufacturer Britvic was also acquired by Carlsberg earlier this year, transferring it from the stock market into the hands of the Danish beer giant.
Meanwhile, London markets suffered further setbacks as drugmaker Indivior announced plans to delist from the London Stock Exchange after moving its primary listing to the United States. Nasdaq Last year, British fintech company Wise said it planned to shift its primary listing location from London to New York.
Among high-value acquisitions completed this year, companies including Royal Mail owner International Delivery Services (IDS), Hargreaves Lansdown and industrial group Spectris were taken private.
Nonetheless, 2025 will also be a stronger year for IPO activity, with 11 companies set to list on the London Stock Exchange in 2025, raising a total of £1.9 billion, the highest level since 2021, according to PwC analysis.